Turnbull Government's incompetence risks AAA credit rating
21 Nov 2016
The latest Budget Monitor released by Deloitte Access Economics predicts yet another deterioration of the Budget under Malcolm Turnbull and Scott Morrison, which will jeopardise Australia’s AAA credit rating.
Deloitte’s new figures project the deficit to blow out by $24 billion over the forward estimates, which would make the return to surplus in 2020-21 more difficult.
With the ratings agencies already expressing concern about the Budget position, any further blowout of this nature will put our hard-earned AAA credit rating at even more danger of being lost.
Already Turnbull and Morrison have delivered a Budget deficit for 2015-16 eight times bigger than they inherited, the 2016-17 deficit has tripled and net debt for this year has blown out by more than $100 billion on their watch.
It is time for this Government to take responsibility for the state of the books and stop pointing the finger at everyone else for their failings.
If Australia loses the AAA rating it will push up mortgage repayments and smash confidence, and the Liberals will have nobody to blame but themselves.
The Budget Monitor also expects record low wages growth won’t just hurt family budgets, but the national Budget as well.
This Prime Minister promised to fix the Budget and create jobs and growth, but all he’s delivered to date are growing deficits, more debt, record low wages and record underemployment.
The Turnbull Government should stop ignoring all the warnings and immediately abandon its $50 billion tax cut for big business, which will smash the Budget when Australia can least afford it.
Labor will continue to play a constructive role in repairing the Budget in a fair way by proposing sensible tax measures like changes to negative gearing and capital gains.